Real Estate Practice Final Exam
(Chapters 1-12)
A broker brings his seller an offer from a potential buyer. If the seller asks about the
buyer's race, the broker: - ANS-may not disclose this information, because to do so
would violate the Rumford Act
\A broker received an offer with a deposit for one of his listings. The seller accepted
the offer. But before the transaction closed, the buyer and seller mutually agreed to
cancel it. The buyer requests the return of the deposit, and the seller has no
objection. The broker: - ANS-must return all of the deposit, but may then sue the
seller for his commission
\A buyer obtains a 90% institutional loan for $270,000 toward the purchase of a
$300,000 house. The buyer does not have the necessary $30,000 for the
downpayment, so the seller takes back a $15,000 ten-year mortgage and the buyer
contributes the other $15,000 in cash. This arrangement is known as a/an: -
ANS-seller second
\A contingent sale collapses because the buyer is unable to sell his own property.
Which form is it appropriate to use at this point? - ANS-Cancellation agreement
\A landlord has two apartments available for rent. Because he feels that married
couples and women tend to be better tenants, he decides to charge a higher security
deposit for single men. Additionally, he places a newspaper ad stating "Women and
married couples preferred." Which of the following is true? - ANS-Both the higher
security deposit and the newspaper ad violate the Fair Housing Act
\A lender calculating a loan applicant's stable monthly income would be most likely to
count: - ANS-income from self-employment consisting of a continuous series of
short-term consulting positions for the last three years
\A list of the rental rates assigned to the various types of units in a property is called
a: - ANS-rental schedule
\A listing agent receives three offers on a house almost simultaneously. The first two
offers are for $4,000 and $5,000 less than the listing price, while the third offer is for
$20,000 less than the listing price. The agent should: - ANS-submit all three offers to
the seller as soon as possible
\A listing agent: - ANS-always represents the seller
\A listing agreement would be enforceable if it were signed by any of the following,
except: - ANS-a real estate broker on behalf of an out-of-state seller
\A lower loan-to-value ratio corresponds to a higher: - ANS-amount of equity in the
property
\A property manager is likely to be concerned with all of the following, except: -
ANS-going commission rates on real estate sales
, \A property manager's budget for a client's property will typically include which of the
following as operating expenses? - ANS-Management fees
\A provision that is related to a financing contingency (and which may be included as
part of a financing contingency clause) is a/an: - ANS-appraisal contingency
\A purchase agreement should contain all of the following, except: -
ANS-commission rate for listing broker
\A real estate agent's advertisements for residential property should always include: -
ANS-the Equal Housing Opportunity logo or slogan
\A seller accepts a contingent backup offer from a second buyer and notifies the first
buyer under a release clause. The first buyer decides to remove the sale of buyer's
property contingency. What happens next? - ANS-The seller and the first buyer will
complete the transaction, assuming the buyer can come up with the downpayment
\A seller offers to pay six discount points on behalf of the buyer. This will reduce the
buyer's interest rate from 9% to 8%. This is known as a: - ANS-buydown
\A seller's counteroffer: - ANS-terminates the original offer
\A standard homeowner's hazard insurance policy will not cover: - ANS-earthquake
\A substantial good faith deposit: - ANS-demonstrates the buyer's intention to
complete the purchase if the offer is accepted
\A transaction is financed on terms that are standard in the community and that did
not affect the price paid for the property. Appraisers refer to this as: - ANS-cash
equivalent financing
\A transfer disclosure statement would not be required in the sale of a: - ANS-retail
space in a commercial district
\Agent Peter is working with a buyer who is interested in a "For Sale by Owner"
property she saw on her way to work. Peter would like to approach the owner to see
if he'll list his property with Peter. In this situation, Peter might have the most success
with a/an: - ANS-one-party listing
\All of the following are characteristic of an FHA-insured loan, except: - ANS-no
downpayment
\All of the following are exempt from escrow agent licensing requirements, except: -
ANS-a broker providing escrow services for someone else's transaction
\All of the following are important components of an inspection report, except: -
ANS-providing a preliminary value estimate for the property
\All of the following would show up on a loan applicant's credit report as derogatory
credit information, except: - ANS-unemployment
\An agent is preparing a CMA and evaluating possible comparable sales. Which of
the following characteristics would most likely make a property unsuitable for use as
a comparable? - ANS-The property sold just over 12 months ago
\An agent putting together a listing proposal wants to estimate the property's value.
He should: - ANS-use the selling prices of comparable properties
\An agent receives an offer of $350,000 for a property that she has listed for
$355,000. When she is about to present the offer to the sellers, another offer comes
in. This one is for $300,000. She should: - ANS-present both offers at the same time
(Chapters 1-12)
A broker brings his seller an offer from a potential buyer. If the seller asks about the
buyer's race, the broker: - ANS-may not disclose this information, because to do so
would violate the Rumford Act
\A broker received an offer with a deposit for one of his listings. The seller accepted
the offer. But before the transaction closed, the buyer and seller mutually agreed to
cancel it. The buyer requests the return of the deposit, and the seller has no
objection. The broker: - ANS-must return all of the deposit, but may then sue the
seller for his commission
\A buyer obtains a 90% institutional loan for $270,000 toward the purchase of a
$300,000 house. The buyer does not have the necessary $30,000 for the
downpayment, so the seller takes back a $15,000 ten-year mortgage and the buyer
contributes the other $15,000 in cash. This arrangement is known as a/an: -
ANS-seller second
\A contingent sale collapses because the buyer is unable to sell his own property.
Which form is it appropriate to use at this point? - ANS-Cancellation agreement
\A landlord has two apartments available for rent. Because he feels that married
couples and women tend to be better tenants, he decides to charge a higher security
deposit for single men. Additionally, he places a newspaper ad stating "Women and
married couples preferred." Which of the following is true? - ANS-Both the higher
security deposit and the newspaper ad violate the Fair Housing Act
\A lender calculating a loan applicant's stable monthly income would be most likely to
count: - ANS-income from self-employment consisting of a continuous series of
short-term consulting positions for the last three years
\A list of the rental rates assigned to the various types of units in a property is called
a: - ANS-rental schedule
\A listing agent receives three offers on a house almost simultaneously. The first two
offers are for $4,000 and $5,000 less than the listing price, while the third offer is for
$20,000 less than the listing price. The agent should: - ANS-submit all three offers to
the seller as soon as possible
\A listing agent: - ANS-always represents the seller
\A listing agreement would be enforceable if it were signed by any of the following,
except: - ANS-a real estate broker on behalf of an out-of-state seller
\A lower loan-to-value ratio corresponds to a higher: - ANS-amount of equity in the
property
\A property manager is likely to be concerned with all of the following, except: -
ANS-going commission rates on real estate sales
, \A property manager's budget for a client's property will typically include which of the
following as operating expenses? - ANS-Management fees
\A provision that is related to a financing contingency (and which may be included as
part of a financing contingency clause) is a/an: - ANS-appraisal contingency
\A purchase agreement should contain all of the following, except: -
ANS-commission rate for listing broker
\A real estate agent's advertisements for residential property should always include: -
ANS-the Equal Housing Opportunity logo or slogan
\A seller accepts a contingent backup offer from a second buyer and notifies the first
buyer under a release clause. The first buyer decides to remove the sale of buyer's
property contingency. What happens next? - ANS-The seller and the first buyer will
complete the transaction, assuming the buyer can come up with the downpayment
\A seller offers to pay six discount points on behalf of the buyer. This will reduce the
buyer's interest rate from 9% to 8%. This is known as a: - ANS-buydown
\A seller's counteroffer: - ANS-terminates the original offer
\A standard homeowner's hazard insurance policy will not cover: - ANS-earthquake
\A substantial good faith deposit: - ANS-demonstrates the buyer's intention to
complete the purchase if the offer is accepted
\A transaction is financed on terms that are standard in the community and that did
not affect the price paid for the property. Appraisers refer to this as: - ANS-cash
equivalent financing
\A transfer disclosure statement would not be required in the sale of a: - ANS-retail
space in a commercial district
\Agent Peter is working with a buyer who is interested in a "For Sale by Owner"
property she saw on her way to work. Peter would like to approach the owner to see
if he'll list his property with Peter. In this situation, Peter might have the most success
with a/an: - ANS-one-party listing
\All of the following are characteristic of an FHA-insured loan, except: - ANS-no
downpayment
\All of the following are exempt from escrow agent licensing requirements, except: -
ANS-a broker providing escrow services for someone else's transaction
\All of the following are important components of an inspection report, except: -
ANS-providing a preliminary value estimate for the property
\All of the following would show up on a loan applicant's credit report as derogatory
credit information, except: - ANS-unemployment
\An agent is preparing a CMA and evaluating possible comparable sales. Which of
the following characteristics would most likely make a property unsuitable for use as
a comparable? - ANS-The property sold just over 12 months ago
\An agent putting together a listing proposal wants to estimate the property's value.
He should: - ANS-use the selling prices of comparable properties
\An agent receives an offer of $350,000 for a property that she has listed for
$355,000. When she is about to present the offer to the sellers, another offer comes
in. This one is for $300,000. She should: - ANS-present both offers at the same time
